Pursuant to the Fair Minimum Wage Act of 2007, the federal minimum wage will
increase from $5.15 per hour to $7.25 per hour by July 24, 2009. The total increase
will be phased in over a two-year period of time as follows:
Effective July 24, 2007: the minimum wage will be $5.85 per hour;
Effective July 24, 2008: the minimum wage will be $6.55 per hour;
Effective July 24, 2009: the minimum wage will be $7.25 per hour.
Please be aware that many states also have their own minimum wage laws. If state
law provides for a higher minimum wage than that required under federal law, an
employer must pay its employees the higher rate.
Employers are also required to immediately post in a conspicuous location the
updated federal minimum wage rate. A printable copy of the Department of Labor's
pre-approved minimum wage poster can be obtained by clicking on the following
Employers must always be diligent in maintaining full compliance with state and
federal wage and hour laws. As employee wages rise, so do the financial risks
created by an employer's failure of compliance. With the current increase to the
minimum wage, it may be a good time for employers to review all of their wage and
hour policies and practices.